| Ways to Vitalize Technology Financing for the Agro-food Industry | |||
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| Author | Kim, Mibok | ||
| Views | 59490 | Publication Date | 2021.03.15 |
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Background and Purpose ○ Innovation is a driving force for inclusive growth. An economic development strategy focusing on productivity through innovation is inevitable for resolving structural problems in the economy amid low and stagnant growth. As in other fields, agriculture sees the production and investment getting low. Population aging slows down agricultural growth engines, too. Although everyone is aware that innovative growth is required, it is still in the initial stage. Farming is an industry that can elicit innovative growth based on value-added agricultural technologies. However, many technologies developed failed to be commercialized despite consistent R&D investments in agriculture. Therefore, it is time to set up platforms for commercializing agro-food ideas devised through R&D. Also, it is necessary to boost investment for such commercialization through policy means such as technology financing. ○ Technology financing provides funds to corporations with technologies that fail to get loans due to low credit ratings or lack of collateral. Concerning the agro-food sector, it is required to commercialize technologies developed based on R&D. As the share of direct financing is low in the agricultural financial industry, technology financing is not general. However, the Credit Guarantee Fund for Farmers and Fishers (afterward, the Guarantee Fund), the Foundation of Agricultural Technology Commercialization and Transfer (FACT), the Nonghyup Agricultural Cooperative Federation (NACF), and the Korea Institute of Planning and Evaluation for Technology in Agriculture and Forestry (IPET) will be able to create synergy for technology financing through collaboration. Technology financing includes credit loans based on technology evaluation guarantees or certificates, loans based on intellectual property rights, and venture capital investments. However, there is not sufficient research on them. It is time to review technology financing and identify policy tasks to pursue innovative growth in the agro-food sector. Research Methodology ○ We conducted a literature review, statistical data analysis, field trips, and surveys for this research, Also, we inspected overseas cases and interviewed experts. We used previous research data related to local technology financing for the literature review, and inspected overseas cases through commissioned research. We interviewed technology financing experts and surveyed agro-food firms with technologies to ask about their financing, investment, and gestation period. (For more information, please refer to the report.) |
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